Exports are likely to be hit by high export duty, railway freight charges and mining ban in Karnataka, it added.

For the just-concluded fiscal, exports are estimated at about 60 MT, a decline of about 40 per cent over 2010-11.

"While Karnataka ban has taken its toll, hike in duty and railway freight have further affected the exports adversely. The trend will continue and exports may not cross 50 MT mark for 2012-13," Federation of Indian Mineral Industries (FIMI) Secretary General R K Sharma said.

Expressing concerns over declining trend, he said the export figures were estimated at 60 MT for 2011-12 compared to 97.64 MT in 2010-11.

Iron ore shipments from Karnataka, a major exporter of the raw material from the country, have been stopped since July, 2010, following allegations of widespread corruption.

The government had hiked the export duty on iron ore to 30 per cent in December last year from 20 per cent, while freight on iron ore for domestic consumption was increased by 20 per cent early in March and the rates were reduced by 16 per cent on its exports.

"We have met the officials in mines, steel, commerce, finance and railways to ensure remedial measures else it will be hard for the iron ore industry to recover," Sharma added.

The exports had dipped by over 36 per cent to 56 million tonnes (MT) in April-February period last fiscal against a-year-ago period.

The most glaring fall was recorded in February 2012, when it came down by over 60 per cent to 4.2 MT from 10.5 MT over the same month in 2011. In January this year, the shipment declined by 48 per cent to 5.5 MT compared to year-ago period.

November and December were equally bad when the exports declined by 44 per cent and 43 per cent to 4.6 MT and 5.9 MT, respectively.